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SA Tenders and Contracts

Display Tender PREM046176 
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Across Government Contract for the Supply of Electricity
Issued By Strategic Procurement
Request for Proposal
Tender State
Open
Tender Code
PREM046176
Category
Power Generation and Distribution Machinery and Accessories

Enquiries 

Description 

The Government of South Australia (State) invites proposals for an across government contract for 100% of its electricity supply requirements.

This open RFP is the first stage of a two stage Procurement Process. Following completion of the evaluation of RFP responses, shortlisted Respondents will be invited to respond to a selective Request for Tender (RFT).

The State is a significant user of electricity consuming in aggregate approximately 500 GWh each year. The State’s contract for electricity supply and retail services for all State sites covered by this Procurement Process has a current expiry date of 31 October 2020 with options to extend to 31 December 2021. 

The State’s electricity demand is categorised as follows:

  • Large sites (greater than 160 MWh p.a.) – approximately 637 NMIs consuming approximately 405 GWh p.a.
  • Small sites (less than 160 MWh p.a.) – approximately 6,117 NMIs consuming approximately 66 GWh p.a.
  • Unmetered lighting (street and traffic lights) – 61 NMIs consuming approximately 27 GWh p.a.

State bodies responsible for this demand include hospitals, schools, police stations, emergency services assets and general government administration buildings.

Typically, the State has contracted for its electricity supply using a bundled energy supply and retail contract for terms of between 2 and 4 years.

In 2017, the State contracted with an organisation to develop a solar thermal plant in Port Augusta to provide for the State’s electricity needs. The 20 year contracting arrangement comprised a Generation Project Agreement (GPA) for the supply of electricity and an Electricity Retail Services Agreement (ERSA) for the provision of retail services. The contracting arrangement was due to start providing electricity from 1 November 2020 when the normal term of the current arrangement is due to end.

The solar thermal plant project did not achieve financial close and so, in April 2019, the State terminated the contract. As a result, the State is now seeking to contract for 100% of its electricity supply requirements from the end of the normal term of the current arrangement on 1 November 2020 (or potentially later subject to extending the term of the existing arrangement up to 31 December 2021).

The State has recently entered into an across government contract for the provision of, and access to, electricity metering and related services. The scope of the arrangement includes the transmission of metering data to the State’s electricity supplier for billing purposes and to AEMO for market settlement activities.

Objectives:

Proposals must contribute to the achievement of one or more of the State’s procurement objectives:

1. Supply of 100% of the State’s electricity load

The State has a strong preference to have a single engagement to supply its total electricity demand of approximately 500 GWh p.a.

The State is prepared to consider proposals that are not capable of supplying the entire electricity demand where they offer significant comparative benefits against one or more of the other procurement objectives, including value for money.

2. Lowest Cost to SA Government

The total cost to the State will be used as a key differentiator in the selection of the preferred Respondent(s) for progression to the RFT process.

3. Improved innovation and competition in wholesale and retail electricity markets in South Australia

The State has a preference for proposals that increase liquidity in the South Australian electricity contracting market and generally improve competition in the state.

The State is also interested in proposals that provide technical, commercial, operational or other value-added dimensions.

4. Contribution towards the State’s commitments of making electricity cleaner, more affordable, reliable and secure for all South Australians

The State will assess the emissions intensity of the electricity portfolio being proposed to meet the State’s demand, how emissions will be measured and how they will deliver cleaner energy over the term of the contract.

The State has a preference for proposals that positively impact security, reliability and NEM wholesale prices.

5. Economic Contribution including compliance with South Australia’s Industry Participation Policy (IPP)

The benefits to the South Australian economy of each proposal will be considered as part of the evaluation. 

Specification Documents 

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  • Part A - RFP - Procurement Process Guidelines  
    • Version 1 (23/10/2019)
    • Available by Download
  • Part B - RFP - Specification  
    • Version 1 (23/10/2019)
    • Available by Download
  • Part C - RFP - Terms and Conditions  
    • Version 1 (23/10/2019)
    • Available by Download
  • Part D - RFP - Response Schedules  
    • Version 1 (23/10/2019)
    • Available by Download
  • SAG ERA (Draft 231019)  
    • Version 1 (23/10/2019)
    • Available by Download
  • SAG ERSA (Draft 231019)  
    • Version 1 (23/10/2019)
    • Available by Download
  • SAG GPA (Draft 231019)  
    • Version 1 (23/10/2019)
    • Available by Download
  • Addendum 1 - Response to RFP Clarification Question  
    • Version 1 (12/11/2019)
    • Available by Download
  • 2018 Annual Consumption Small Sites - By NMI  
    • Version 1 (12/11/2019)
    • Available by Download

Responses 

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Tender closes at 3:00 PM Adelaide time 5 December 2019
Click here to submit an electronic response

Survey 

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